XN000022-1983-10-21 — Page 2

FRIDAY, OCTOBER 21, 1983

GOVERNOR PLEASED ABOUT EXCHANGE RATE

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THE GOVERNOR, SIR EDWARD YOUDE SAID TODAY (FRIDAY) HE WAS VERY PLEASED TO SEE THAT THE EXCHANGE RATE HAD BEEN SETTLING DOWN +AS WE WERE CONFIDENT THAT IT WOULD+.

HE SAID THAT WHILE IN PEKING, HE HAD BEEN GETTING REPORTS FROM HONG KONG, AND IN PARTICULAR FROM THE FINANCIAL SECRETARY ON THE SCHEME FOR THE STABILISATION OF THE EXCHANGE RATE.

SIR EDWARD WAS SPEAKING TO REPORTERS ON HIS RETURN FROM PEKING AFTER TAKING PART IN ANOTHER TWO DAYS OF SINO-BRITISH TALKS ON THE FUTURE OF HONG KONG.

+I'VE HAD ANOTHER TWO BUSY DAYS IN PEKING. WE HAD TALKS ON WEDNESDAY AND THURSDAY, AND THE AMBASSADOR (SIR PERCY CRADOCK) WAS HOST TO A VERY FRIENDLY DINNER FOR THE TWO DELEGATIONS YESTERDAY EVENING, HE SAID.

+YOU WILL HAVE SEEN FROM THE JOINT STATEMENT THAT WE ISSUED THAT THE TALKS WERE NOT ONLY USEFUL, THEY WERE CONSTRUCTIVE AND WE ARE MEETING AGAIN ON NOVEMBER 14 AND 15.

+YOU MAY THINK THAT IS A LITTLE FAR AHEAD BUT THE EXPLANATION IS THAT THE VICE MINISTER (MR YAO GUANG) AND SIR PERCY AND I HAVE A NUMBER OF COMMITMENTS AND THAT IS THE EARLIEST WE CAN MANAGE.

+BUT THAT DOESN'T MEAN THAT NOTHING WILL BE HAPPENING MEANWHILE.

+SIR PERCY AND THE VICE MINISTER WILL BE MAINTAINING INFORMAL CONTACTS AND I AM SURE THOSE CONTACTS WILL BE VERY USEFUL PREPARATION FOR THE NEXT ROUND, HE SAID.

THE GOVERNOR POINTED OUT THAT HE WAS VERY WELL AWARE THAT THERE HAD BEEN A LOT OF SPECULATIVE STORIES AROUND IN THE PAST FEW DAYS.

+BUT I AM GOING TO DISAPPOINT YOU AND TELL YOU I AM NOT GOING TO COMMENT ON THEM BECAUSE I DON'T THINK THAT SPECULATION IS VERY HELPFUL, HE TOLD NEWSMEN AT THE AIRPORT.

+SO I WILL ONLY REPEAT THAT WE HAVE HAD VERY USEFUL AND CONSTRUCTIVE MEETINGS, AND I AM LOOKING FORWARD TO THE NEXT ROUND.

MEETING THE GOVERNOR AT THE AIRPORT WERE THE CHIEF SECRETARY, SIR PHILIP HADDON-CAVE, THE SENIOR UNOFFICIAL MEMBER OF THE EXECUTIVE COUNCIL, SIR SZE-YUEN CHUNG, THE SENIOR UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL, MR ROGER LOBO, AND THE VICE CHIEF EDITOR OF THE XINHUA NEWS AGENCY (HONG KONG BRANCH), MR TAN GAN.

SIR EDWARD WAS ACCOMPANIED ON HIS TRIP BY THE POLITICAL ADVISER, MR ROBIN MCLAREN, AND THE GOVERNMENT CHIEF INTERPRETER, MR Y.P. CHENG.

BEFORE LEAVING THE AIRPORT FOR GOVERNMENT HOUSE, SIR EDWARD WENT OUT TO THE END OF THE RUNWAY TO TAKE A LOOK AT THE DAMAGED BOEING 747 FREIGHTER.

HE WAS ACCOMPANIED BY SIR PHILIP, SIR SZE-YUEN, MR LOBO AND THE AIRPORT GENERAL MANAGER, MR DICK SEIGEL.

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